Answer: Positive net exposure
Explanation:
Net exposure is the difference in quantity between an investment's fund lengthy and brief exposure. It measures the level to which the trading book of a fund is exposed to variations in the industry.
A firm that possess more foreign assets than its liabilities has a positive net exposure. Positive net exposure implies that there is a currency's net long. This means that in a given currency, a firm possesses more assets than liabilities. The main disadvantage with positive net exposure is that there may be a fall in the value of the foreign currency at the expense of the domestic currency in the long run.
A cover letter is the professional communication .
Expected return of the stock is greater than 12%.
Using formula, Risk free rate + beta (market risk rate - risk free rate)\
= 2% + 2.0 (7%-2%)
= 13.6 - 0.4* risk premium
Risk premium of a stock is greater than 12%.
A stock's total return takes into account both capital gains and losses as well as dividend income, as opposed to a stock's nominal return, which only displays its price movement. In addition to considering the actual rate of return, investors should consider their ability to withstand the risk involved with a given investment. An investment's return on investment (ROI) provides a general indication of its profitability. The return on investment (ROI) is calculated by subtracting the investment's initial cost from its final value, dividing the result by the cost of the investment, and finally multiplying the result by 100.
Note that the full question is:
If the market risk premium is 7%, the risk-free rate is 2% and the beta of a stock is 2.0, what is the expected return of the stock?
A. less than 12%.
B. 12%.
C. greater than 12%.
D. cannot be determined.
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<span>This long term care facility purchases at least 85% of its
food and supplies from one distributor and it’s an example of prime vending. A
prime vending is a type of purchasing that has gained acceptance and popularity
among restaurant and non-commercial buyers. It is also a service which people
or the workers do.</span>
The correct answer that would best complete the given statement above would be the term LAW OF DEMAND. The law of demand states that <span>the quantity demanded of a product varies inversely with its price, as long as other things do not change. Hope this answers the question. </span>
